Key Statistics at a Glance

• The global logistics market was valued at USD 4,109.1 billion in 2025 and is projected to reach USD 8,496.1 billion by 2033, a 10.1% CAGR. Asia Pacific held the largest regional share, at 35.3%.Grand View Research – Logistics Market Report

• The freight forwarding software market alone was valued at USD 18.71 billion in 2024 and is projected to reach USD 40.37 billion by 2035, a 7.24% CAGR.Market Research Future – Freight Forwarding Software Market

• The supply chain management software market is projected to grow from $38.51 billion in 2025 to $58.42 billion by 2030, an 8.7% CAGR.

• The American Trucking Associations puts the U.S. driver shortfall at approximately 82,000 in 2026, projected to exceed 160,000 by 2031.

• Warehouse automation spending is projected to grow from $34.17 billion in 2026 to $65.74 billion by 2031.Mordor Intelligence – Warehouse Automation Market

The Global Logistics Market: Size and Segmentation

Grand View Research values the global logistics market at USD 4,109.1 billion in 2025, growing to USD 4,334.3 billion in 2026 and USD 8,496.1 billion by 2033, a 10.1% CAGR. The segment breakdown matters more than the headline number if you’re trying to figure out where a specific product fits.

1. By mode of transport. Road dominates, at 43.4% of 2025 revenue, on the strength of domestic freight demand and door-to-door flexibility. Ocean is the fastest-growing mode, tied to rising containerized trade and global sourcing.

2. By category. Conventional (B2B) logistics held 73.3% of the market in 2025. E-commerce logistics is growing faster, as fulfillment centers, parcel networks, and urban delivery infrastructure expand.

3. By service line. Transportation services held the largest share, at 31.9%. Warehousing and distribution services are growing fastest, pushed by omnichannel retail and warehouse automation adoption.

4. By model. 3PL and contract logistics dominate, at 71.4% of the market. 4PL and lead logistics are growing fastest, as large enterprises consolidate multiple providers under one coordinating partner.

5. By type. Forward logistics held 68.6% of the market. Reverse logistics is growing fastest, tied to rising e-commerce return volumes and circular-economy pressure.

6. By application. Retail and e-commerce is the largest application segment. Healthcare logistics is expected to grow strongest, driven by cold chain and biologics distribution needs.

What’s driving growth, and what’s holding it back

Grand View Research’s own analysis lays out a driver, a restraint, and an opportunity:

• Driver: AI integration. Logistics companies are using AI to forecast demand, optimize delivery routes, support predictive maintenance, and run warehouse robotics and inventory systems. The report names this as the strongest growth driver.

• Restraint: fuel and operational cost volatility. Rising fuel, labor, and warehouse leasing costs are squeezing margins. The report specifically flags geopolitical tension around the Strait of Hormuz as a pressure point on freight rates.

• Opportunity: Logistics 4.0. Automation, IoT, robotics, and data-driven systems are converging across warehousing, transportation, and distribution, mirroring the Industry 4.0 shift in manufacturing.

Competitive landscape

The market is fragmented. A handful of multinational players, DHL Group, Kuehne + Nagel, DSV A/S, FedEx, and UPS, hold significant share through global networks and integrated service portfolios. Thousands of regional and local operators still compete on domestic transportation, warehousing, and last-mile delivery, particularly in developing economies where local relationships matter more than scale.

Two recent moves stand out: DHL Group’s Global Forwarding division expanded air freight capacity between Asia and Europe in March 2026 to support rising cross-border demand, and C.H. Robinson opened a 142,600-square-foot fresh produce logistics center in South Texas in May 2026, positioned near the U.S.-Mexico border specifically to speed up cross-border produce movement.

Regional Deep Dive

North America benefits from mature transportation infrastructure and high e-commerce penetration. U.S. retail e-commerce sales reached approximately USD 326.7 billion in Q1 2026 alone, according to the U.S. Census Bureau, which keeps demand high for fulfillment centers, same-day delivery, and 3PL capacity.

Asia Pacific holds the largest global share, at 35.3%, with China as the single largest country market. China’s automated-warehouse investment shows up in specific projects, Shanghai Kintetsu Logistics opened a highly automated warehouse in the Shanghai Waigaoqiao Free Trade Zone in March 2026. Japan is notable for a different reason: an aging population and shrinking working-age workforce are forcing logistics companies to adopt robotics, autonomous mobile robots, and AI-powered systems just to keep operations staffed, which makes Japan one of the more automation-forward markets in the region.

Europe is growing on the back of sustainability regulation. Emission-reduction targets and carbon-neutrality commitments are pushing logistics providers toward electric fleets, alternative fuels, and energy-efficient warehousing. Germany leads the region on the strength of its manufacturing and export base, followed by strong e-commerce-driven growth in the UK. UK e-commerce sales grew nearly 30% between 2024 and 2025, according to the U.S. International Trade Administration, and online channels are projected to account for roughly 38.1% of total UK retail sales in 2025.

The Freight Forwarding Software Market

General “logistics market” figures blend software, physical transportation, and warehousing services together. A freight forwarder or SaaS vendor operating in this space needs the software-specific number, not the blended one, so this gets its own section.

Market Research Future values the freight forwarding software market at USD 18.71 billion in 2024, growing to USD 20.07 billion in 2025 and USD 40.37 billion by 2035, a 7.24% CAGR. That figure spans freight management, warehouse management, transportation management, and supply chain management software sold to freight forwarders, so it’s a broad definition.

A separate report, from Market Growth Reports, values the same-named category at just USD 531.65 million in 2024, projected to reach USD 1,382.31 million by 2033 at an 11.2% CAGR, but scopes it narrowly to standalone road, ocean, air, and other forwarding software.

That’s roughly a 35-fold difference for the same 2024 market. Neither number is wrong. They’re measuring different things, and any “the market size is $X” claim needs a scope attached before it means anything.

How the market segments (MRFR)

• By deployment type: Cloud-based solutions are the largest segment today, valued at roughly $7.0 billion in 2024 and projected to reach $15.0 billion by 2035, on the strength of scalability and lower upfront cost. On-premises deployment is smaller but seeing renewed interest among large enterprises with existing IT infrastructure and stricter data control requirements.

• By application: Transportation management is the largest software category, projected to grow from $5.0 billion in 2024 to $10.5 billion by 2035. Supply chain management is the fastest-growing category, as demand shifts toward integrated, end-to-end visibility rather than point solutions.

• By end user: Freight forwarders are the largest buyer segment, given their coordinating role across customs, carriers, and shippers. Third-party logistics providers are the fastest-growing buyer segment, as they increasingly compete on technology rather than price alone.

• By functionality: Tracking and visibility is the dominant functionality, built on IoT and GPS integration. Billing and invoicing is growing fastest, as forwarders automate financial workflows tied to complex, multi-currency pricing.

• By system integration: TMS integration is the largest category. WMS integration is growing fastest.

Regional breakdown

North America leads with roughly $9.0 billion of the 2024 market, about 48% of the global total. Europe follows at roughly $5.5 billion, led by Germany and the UK. Asia Pacific sits at roughly $3.5 billion, led by China and India, but it’s the fastest-growing region overall. The Middle East and Africa trail at roughly $0.71 billion, with the UAE and South Africa leading there.

Vendor landscape

Named vendors across both reports include SAP, Oracle, CargoWise, Kuehne + Nagel, DB Schenker, DHL, Expeditors, Geodis, XPO Logistics, WiseTech, Descartes, Riege Software, Softlink, Magaya, MercuryGate, Boltrics, Linbis, and Logitude World. WiseTech and Descartes were named as the two largest software-specific vendors by installed base in the narrower-scope report.

Recent developments

DHL partnered with an AI firm to build shipment-delay prediction and routing optimization into its freight forwarding software. Kuehne + Nagel launched a digital booking platform with real-time tracking built in. Expeditors expanded into Southeast Asia by acquiring a regional logistics provider. Descartes extended its cloud freight solutions to 42 additional countries. Oracle integrated its freight platform with over 220 global customs authorities for electronic clearance.

Where the market is headed

Both reports point the same direction despite the wildly different base numbers. AI-driven predictive analytics is showing up for shipment optimization. Blockchain is getting tested for supply chain transparency and reducing documentation fraud. Mobile access for real-time freight management keeps expanding. Cloud-based deployment continues gaining share against on-premises installations, and sustainability features, carbon tracking per shipment in particular, are turning into a standard software feature instead of an add-on.

Artificial Intelligence Is Moving From Pilot to Core Infrastructure

• The Hackett Group’s 2026 Supply Chain Key Issues Study found 83% of organizations had deployed or were piloting AI in supply chain intelligence and analytics, with 74% reporting capability in sales and operations planning and 72% in advanced planning and scheduling.

• 72% of logistics employees were already using AI tools in some form in 2024, ahead of formal organizational rollout, the highest rate of any industry measured. 85% of executives plan to increase AI spending in 2026, though Deloitte found that while 85% of organizations increased AI investment over the past year, only 6% saw a return within the first twelve months.

• The AI in supply chain market specifically is valued at $9.94 billion in 2025, projected to reach $236 billion by 2035.

Warehouse Automation and Robotics

• The global warehouse automation market was estimated at $29.98 billion in 2025 and $34.17 billion in 2026, projected to reach $65.74 billion by 2031, a 13.98% CAGR. Automation-related software is expected to grow from 31% of total automation spending in 2023 to 46% by 2030.

• The warehouse robotics sub-segment alone was valued at USD 6.51 billion in 2025, projected to reach USD 25.41 billion by 2034, a 16.80% CAGR. Asia Pacific holds 51.70% of that segment.

• Gartner projects that by 2030, half of new warehouses in developed markets will be designed as robot-centric facilities. 76% of supply chain and logistics operations already report significant workforce shortages, warehousing among the hardest hit.

Real-Time Visibility and the Internet of Things

• The global supply chain visibility software market was estimated at USD 3.3 billion in 2025, projected to reach USD 10.9 billion by 2034, a 13.4% CAGR. SAP led the market with over 10% share in 2025.

• The broader supply chain IoT market was valued at USD 83.16 billion in 2024, projected to reach USD 592.43 billion by 2035, a 19.54% CAGR.

• Digital freight matching has already cut empty truck miles by 15 to 25% in some deployments. That’s a margin number, not just an adoption statistic.

E-Commerce and the Last-Mile Delivery Boom

• The global last-mile delivery market was valued at $167.3 billion in 2025, projected to reach $348.8 billion by 2033, a 9.8% CAGR. B2C held 69.6% share in 2025, and North America led regionally with 31.2%.

• The autonomous last-mile delivery market, drones, delivery robots, and autonomous trucks combined, was estimated at $1.3 billion in 2025, projected to reach $11.5 billion by 2035, a 24.5% CAGR. The U.S. Census Bureau forecasts e-commerce will account for 20 to 25% of total U.S. retail sales by 2030, up from 15.6% in 2024.

Supply Chain Resilience: Reshoring, Nearshoring, and Diversification

• 56% of executives are planning nearshoring or combined reshoring and nearshoring strategies, according to Capgemini Research Institute.

• In a survey of 250 retail supply chain leaders, 77% had already shifted sourcing away from China toward tariff-neutral countries, and 87% were increasing buffer inventory. 88% said visibility into supply chain changes is essential to customer loyalty.

• The Reshoring Initiative recorded approximately 244,000 reshoring and foreign direct investment job announcements in 2024. In its 2026 survey, 36% of OEMs had reshored or were actively engaged in reshoring, up from 29% in 2025.

The Labor Gap Behind the Technology Push

• The American Trucking Associations put the U.S. driver shortfall at approximately 82,000 in 2026, up from 78,000 two years earlier, with projections pushing that figure past 160,000 by 2031.

• Warehouse turnover averages 36% industry-wide, and labor accounts for 50 to 70% of total warehouse operating expenses.

• Demand for supply chain talent grew 31% year over year in 2026, while logistics hiring costs rose 22% over the same period.

Sustainability and Green Logistics

• The green logistics market was valued at $1,494.27 billion in 2026, projected to reach $1,966.56 billion by 2030, a 7.1% CAGR.

• Logistics and freight account for roughly 7% of global greenhouse gas emissions, according to McKinsey & Company. Trucking drives 57% of that freight emissions footprint, ocean shipping 25%, and air cargo 14%.

• 78% of consumers say environmental sustainability influences their choice of delivery provider, per an IBM and NRF consumer study.

What This Means Going Forward

AI and automation are turning into table stakes rather than a differentiator. Trade policy volatility is forcing companies to build redundancy into sourcing instead of optimizing purely for cost. A persistent labor shortage is making automation investment less optional than it used to be. For freight forwarders, the software side of the business matters as much as the physical side now. Whichever market-size figure you trust, both freight forwarding software reports agree on where the growth is concentrated: cloud deployment, AI-driven visibility, and integrated TMS, WMS, and SCM platforms, rather than standalone point tools.

Sources referenced: Grand View Research (Logistics Market Report), Market Research Future (Freight Forwarding Software Market), Market Growth Reports (Freight Forwarding Software Market), MarketsandMarkets, Mordor Intelligence, Fortune Business Insights, Global Market Insights, Market Research Future (IoT), Coherent Market Insights, Straits Research, The Business Research Company, Capgemini Research Institute, the Reshoring Initiative, American Trucking Associations, The Hackett Group, McKinsey & Company, IBM/NRF, U.S. Census Bureau.